Closely followed crypto analysts say that Bitcoin (BTC) is on the verge of breaking a key resistance level that could spark a big move to the upside.
Glassnode co-founders Jan Happel and Yann Allemann, who share the Negentropic handle on the social media platform X, say that if Bitcoin convincingly crosses $52,000, traders may start feeling FOMO (fear of missing out) and fuel a continuation of the bullish momentum.
“Bitcoin is waiting for nobody! Bitcoin has experienced a significant rally towards the $52,000 level, breaking through key resistance areas.
The $52,000 level is crucial, historically serving as strong resistance on the weekly chart. A breach could fuel further buying pressure, potentially leading to a FOMO scenario. BTC’s current trajectory hinges on its ability to surpass and maintain levels above $52,000.”
The analysts say that Bitcoin’s next line of resistance in an uptrend is $58,000.
“BTC has left the building. Or more correctly, has taken off in a big way! Next we see at $58,000 before $65,000. ATHs here we come! The big BTC bull continues.”
Looking at their chart, the analysts suggest that Bitcoin has completed a bullish ABC corrective wave.
The Elliott Wave theory is a technical analysis approach that attempts to predict future price action by following crowd psychology that tends to manifest in waves. According to the theory, a bullish asset often goes through an ABC correction before launching a five-wave move to the upside.
Lastly, the analysts say that while there may be future market corrections, historical price action shows that corrections alone do not always invalidate a Bitcoin uptrend.
“Remember the ‘massive pullback’ in BTC in January 2024? Try see if you can spot it here. BTC now close to surpassing the level from intro of BTC ETF. Major rallies are accompanied with large pullbacks.
That is simply the name of the game! Embrace it or don’t put your money in crypto. But it does not mean that the entire trend has shifted. This rally in BTC and crypto is far from over.”
Bitcoin is trading for $52,309 at time of writing, up more 1% in the last 24 hours.
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